Thinking of buying a home? That’s a big step and an exciting one too. But before you start scrolling through real estate listings, it’s important to consider how any debt you are holding will impact your application.

When you apply for a home loan, lenders look at more than just your income. They assess the whole picture to determine how much they’re willing to lend you. One of the key pieces of that puzzle is your existing debt. Depending on what you owe and to whom, it could either reduce the amount you can borrow or impact your chances of being successful in your application.

How lenders decide what you can borrow

Lenders calculate what’s known as your borrowing power. This is the amount they believe you can comfortably afford to repay on a home loan. To figure that out, they consider your income, your expenses, existing debt, credit history, savings patterns, and the size of your deposit. They’ll also take into account the property you’re wanting to buy, the term of the loan, and type of loan.

It all comes down to risk. A lender wants to be confident you can meet your repayments without stretching yourself too thin. And that’s where the type of debt you hold becomes very important.

Some debt is better than others

Not all debt is equal. Some types of debt are seen as manageable or even responsible, while others are not viewed favourably.

Let’s start with personal loans, particularly those used for holidays, weddings or other one-off costs. These are unsecured and tend to have higher interest rates, which makes them less attractive from a lender’s perspective. On the other hand, a car loan that’s secured against the vehicle might be seen in a slightly better light, though it still reduces your capacity to take on a mortgage.

Student debt, like HECS or HELP, is generally treated more leniently because of its income-based repayment structure. But lenders still factor it in when assessing how much disposable income you have.

Credit cards can be especially tricky. It’s not just the balance you owe that matters – it’s the limit. Even if you clear your balance each month, a high limit can work against you because it represents potential debt.

Buy now, pay later services have become increasingly popular, but they also tend to be red flags for lenders. If you’re regularly using these services, it could suggest you’re relying on short-term credit to get through the month.

Then there’s co-borrowed debt, where you’ve taken on a loan with someone else. Even if you’re not the one making the repayments, a lender will still treat that debt as your responsibility. And if you already have an existing mortgage, that naturally has a big impact on what you can afford to borrow next.

Steps to reduce the impact of debt

If you’re keen to strengthen your loan application, there’s plenty you can do. Start by checking your credit report to make sure everything listed is accurate and sort out any errors or unexpected surprises.

Focus on paying off high-interest debt first, especially credit cards. If you can, reduce your card limits or close accounts you’re not using. That alone can make a noticeable difference to your borrowing power.

Try to avoid taking on any new debt in the months leading up to your application. A new personal loan or store finance might seem manageable now, but it could make your finances look more stretched than they actually are.

The goal is to show lenders that you’re in control of your money. That means a steady savings history, low debt levels, and a clear plan for managing repayments once you take on a mortgage.

Remember, debt isn’t everything

While your debt levels play a major role in the loan assessment process, don’t be discouraged if you’re not completely debt-free.

What matters most is how you manage the debt you do have and the steps you’re taking to get your finances into shape. If home ownership is your goal, now’s the perfect time to start managing your debt and building up your financial confidence.

Your future self (with the house keys in hand) will thank you for it.

If you have any questions or need any information please give us a call on 039723 0522.

Spring is set for a bumper selling season

Housing values continued to gain momentum nationally for the seventh consecutive month with an increase of 0.7% according to figures from Cotality (previously Corelogic). This is the strongest gain since May 2024.

Eliza Owen, head of research at Cotality stated that the drivers of the increase in home values is straightforward.

“You’ve got more demand in the housing market, with real wages growth up to its highest level in five years, lower interest rates and more consumer confidence aiding housing purchases,” Ms Owen said.

It appears to be a sellers’ market this spring as home prices are set to continue to rise and fewer properties are being listed for sale. Cotality Australia’s research director, Tim Lawless said “Vendors are in a strong position as we head into spring.”

Growth is set to continue

The interest rate cuts in February, May and August have spurred on buyer demand as borrowers have increased borrowing capacity. “Once again we are seeing a clear mismatch between available supply and demonstrated demand placing upwards pressure on housing values”, said Tim Lawless.

“The annual trend in estimated home sales is up two percent on last year and tracking almost 4% above the previous five-year average. At the same time, advertised supply levels remain about -20% below average for this time of the year.”

The national median house price is now $848,858, up 4.1% over the year. Brisbane achieved the highest monthly growth rate, up 1.2%, while Hobart was the only capital which lost ground, down by 0.2%.

Fewer properties hitting the market

While auction clearance rates rose to 70% in August, the highest since February 2024, there are low levels of properties being list for sale.

Tim Lawless said “We are starting to see the usual start of spring upswing in new listings coming to market, but from a low base. A pick up in the flow of stock coming to market through spring will be good news for buyers who generally have limited choice at the moment.”

Other factors set to boost the market

Market confidence is set to remain as consumer sentiment reached a 3-and-a-half year high in August, core inflation is around the mid-point of the RBA’s target, as well as further interest rates cuts, along with the expansion of the First Home Buyer Guarantee due on 1 October.

“Saving for a deposit is one of the biggest hurdles for accessing home ownership. Saving a 5% rather than a 20% deposit could shave around 10 years off the time it takes to accrue a deposit in an expensive market like Sydney,” Mr Lawless said.

Households are continuing to accrue savings with accumulated savings nearing pre-pandemic levels in March.

Wages growth is another factor that is looking to bolster the market with real wages growth at 1.3% per annum, the highest levels since June 2020.

On the downside

Affordability continues to constrain the market and will keep growth levels steady, along with the pressure on the growth in population which is an ongoing issue with housing supply.

Dwelling values over the quarter

Melbourne

The Victorian capital posted a 1.0% quarterly move according to Cotality figures, taking the city’s median dwelling price to $803,104. Investors should take note that the gross rental yield figure for Melbourne is 3.7%.

Sydney

In the three months to August, Sydney experienced a dwelling value change of 1.7% resulting in a median of $1.224 million. The gross rental yield for the Harbour City remains the lowest of the capitals at 3.0%.

Brisbane

The Queensland capital continues to record the second most expensive spot for dwelling values at $949,583 and a quarterly rise of 3.0%. Brisbane has recorded a gross rental yield of 3.6%.

Canberra

The national capital recorded a rise of 1.5% during the quarter with the median now sitting at $872,957. For Canberra, the gross rental yield is 4.1%

Perth

Perth prices increased 3.1% over the quarter, taking its medium to $841,928. Perth recorded 4.2% gross rental yield.

For more information about how you might be able to purchase a property in the current market, get in touch with us today.

Note: all figures in the city snapshots are sourced from: Cotality national Home Value Index (September 2025) 

If you have any questions or need any information please give us a call on 039723 0522.

Stay up to date with what’s happened in the Australian economy and markets over the past month.

Consumer sentiment continues to rise after the latest interest rate cut.

A higher-than-expected jump in inflation figures may prompt the RBA to keep interest rates on hold at this month’s meeting

Click here to view our update.

Please get in touch on 03 9723 0522 if you’d like assistance with your personal financial situation.

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This information is of a general nature and does not take into consideration anyone’s individual circumstances or objectives. Financial Planning activities only are provided by Integrity One Wealth Advisers Pty Ltd (ABN 35 994 727 125) as a Corporate Authorised Representative (1316489) of Integrity Financial Planners Pty Ltd (AFSL 225051). Integrity One Wealth Advisers Pty Ltd and Integrity One Accounting and Business Advisory Services Pty Ltd are not liable for any financial loss resulting from decisions made based on this information. Please consult your adviser, finance specialist, broker, and/or accountant before making decisions using this information.

Investing isn’t just a numbers game. It’s an activity that stirs various emotions from hope and optimism to fear and anxiety.

Whether the ASX is surging or stumbling, emotional responses to market movements can shape outcomes just as much as economic fundamentals. Understanding those responses is crucial to building resilience, especially in unpredictable times.

These patterns underscore the importance of long-term perspective, especially in a market shaped by both global sentiment and uniquely local factors.

How emotions enter the equation

We like to think our financial decisions are rational, but the truth is more complex. Investors aren’t robots crunching numbers in isolation. We are influenced by news cycles, cultural values and personal stories from friends, family and colleagues.

When markets rise, euphoria and FOMO can drive hasty buying decisions. During downturns, anxiety and regret can push investors to sell at a loss, despite having sound long-term strategies.

This pattern has played out across decades, from the dot-com bubble to the COVID recovery. And remember that emotional investing isn’t just a beginner’s problem. Even seasoned investors can be swept up by sentiment if safeguards aren’t in place.

Psychologists have long observed how financial stress activates similar responses to physical threats, triggering fight-or-flight instincts rather than thoughtful analysis. That’s why even well-informed investors may react defensively when facing market instability.

The good, the bad and the balancing act

Emotional investing isn’t all risk. In the right conditions, it reflects conviction, clarity and purpose. For example, values like patience and belief in the future can help investors stay committed during market dips.

Life changes such as home ownership, welcoming a child or retirement can bring useful emotional clarity to financial decisions. And ethical investing often stems from emotions such as care and connection to community.

When used with discipline, emotions can reinforce sound decisions rather than undermine them. Investors who use emotional clarity to establish long-term goals tend to feel more confident, even when short-term volatility strikes.

That said, emotions can also derail strategy. Panic selling during downturns, overconfidence after gains and herd mentality all pose risks.

The 2022 market correction saw many Australians pull out of super investments prematurely, missing the rebound that followed. These reactions stem not just from fear but also from a desire to act, even when patience may be more effective.

Learning from behavioural finance

Behavioural finance gives us tools to interpret emotional reactions. Biases like loss aversion, recency bias and anchoring affect decision-making in subtle but powerful ways.

These include:

• Loss aversion – People often feel the sting of losses more intensely than the joy of equivalent gains, which can lead to overly cautious or reactive choices.
• Recency bias – Recent events weigh heavily on perceptions, leading investors to expect trends will continue simply because they’ve just occurred.
• Anchoring – Fixating on a past portfolio value or arbitrary benchmark can skew rational assessment.

Recognising these tendencies helps investors avoid knee-jerk decisions and design portfolios that stay aligned with goals over time. It’s not about eliminating emotion; it’s about becoming aware of how it operates and mitigating its effects through smart responses.

After all, markets are always shifting. Emotions will always emerge. The goal isn’t to shut them out, but to understand them and develop structures to keep emotions from steering the ship. When investors learn to pause, reflect and act with intent, they not only improve outcomes but feel more confident in their journey.

If you’d like to explore strategies to build emotional resilience in your portfolio, or tools to help remove bias from investment decisions, please give us a call.

At its latest meeting, the Reserve Bank Board announced it was lowering the cash rate from 3.85% to 3.60%.

What drove this decision?
There are two main reasons:

• Inflation is easing – Prices aren’t rising as quickly as before. The RBA’s preferred measure of inflation is now close to their target range of 2–3%.
• Global uncertainty – Issues like trade tensions in the US could affect economic growth, so the RBA is being cautious.

What’s happening in Australia?

• Inflation: The trimmed mean inflation (a key measure) was 2.1% in June – the lowest since 2021.
• Jobs: Unemployment rose slightly to 4.3%, showing the job market is softening
• Wages: Pay rises are strong, which can push up business costs and slow down how quickly inflation falls.

What does this mean for interest rates going forward?
The RBA is expected to continue lowering rates slowly and carefully. They may cut rates again to around 3.35% by the end of the year if inflation keeps easing and the economy remains stable.

Key takeaways:

• Lower interest rates can help reduce borrowing costs (like mortgage repayments).
• Inflation is coming down, which is good news for household budgets.
• The RBA is being cautious and will adjust rates as needed to keep the economy on track.

Please click here to view the Statement by the Monetary Policy Board: Monetary Policy Decision.

With the official rate change, we’re watching closely what the banks do with their rates, as some of Australia’s biggest lenders may make changes to their rates.

Please get in touch if you would like to discuss recent rate movements or if you would like to review your finance options.

Spring cleaning isn’t just for closets.

We’re used to tackling physical mess. We clear out closets, sort through garages, and sometimes even face that overflowing junk drawer in the kitchen. But there’s another kind of clutter we often ignore – the kind that lives on our devices, in our inboxes, and across the dozens of apps and platforms we use every day.

Our digital lives can become chaotic without us even realising it. Old files pile up, passwords go unchanged, unused apps stake up digital space, and outdated accounts hang around long after we’ve forgotten them.

Cleaning up your digital life isn’t just about tidiness. It’s about taking back control, reducing stress, and protecting your personal information. A little effort can help you make the most of the technology you rely on every day.

Start with the inbox

Email is one of the easiest places for clutter to grow unnoticed. Between unread messages, endless subscriptions, and decades of digital dust, many of us feel buried in content before we even open our inbox.

Start by archiving or deleting messages you no longer need. Use the search function to batch-delete emails from certain senders, especially those you no longer want to hear from. Unsubscribe from newsletters or promotional emails you tend to ignore and consider setting up filters to automatically sort messages into folders moving forward.

Even if you only clean up a few hundred emails, you’ll immediately feel a sense of relief. A tidier inbox helps you spot what’s actually important and reduces the mental load of “dealing with it later”.

Declutter your devices

Next, look at your phone and computer. These devices often become digital dumping grounds. Photos, documents, apps, and downloads accumulate over time and can start to feel overwhelming.

Begin by deleting apps you haven’t used in the last three to six months. If you’re not sure about something, check when it was last opened. Move photos and videos to cloud storage or an external drive to free up space. Organise documents into clearly labelled folders and delete duplicates or outdated versions.

Some parts of digital clutter are less visible but still worth clearing. Take a moment to empty your downloads folder, clear your browser cache, and remove temporary files. These forgotten corners of your devices can quietly slow things down and make everything feel more chaotic.

Audit old accounts

Over the years, you’ve probably signed up for countless shopping websites and other services, many of which you’ve long forgotten. These inactive accounts can pose security risks, especially if they’re linked to old or weak passwords.

Use a password manager to help identify and organise your accounts. Close the ones you no longer use and update the passwords for those you still need. Closing unused accounts limits the number of places your data is stored, which reduces your exposure in the event of a data breach.

This step may take a little time, but it’s one of the most powerful ways to protect your digital footprint.

Check your digital security

While you’re auditing, take time to strengthen your online security. Start with your most important accounts – like email, banking, and cloud storage – and make sure each one uses a strong, unique password.

Enable two-factor authentication where possible. This extra layer of protection only takes a few minutes to set up and can make a big difference in keeping your accounts secure.

Finally, don’t forget to check for software updates on all your devices. These often include important security patches, so keeping your system up to date is one of the easiest ways to stay protected.

Refresh your social media

Social media can be a powerful tool, but only if it reflects who you are now. If your feed feels stale or overwhelming, take a few minutes to clean it up.

Unfollow or mute accounts that no longer resonate with you. Curate your feed so that it reflects your current interests, values, and goals. This simple step can turn mindless scrolling, or doomscrolling, into a more positive, inspiring experience.

Digital spring cleaning is not about perfection. It’s about creating a digital environment that supports how you live and work right now. If this all sounds a little intimidating just take it one step at a time. Wherever you begin, the most important thing is to begin.